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    Cigna Group (CI)

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    Business Description

    The Cigna Group is a global health company that operates through two main growth platforms: Evernorth Health Services and Cigna Healthcare. The company provides pharmacy benefits, specialty pharmacy, specialty distribution, and care delivery and management solutions through Evernorth Health Services, partnering with various stakeholders such as health plans and healthcare providers . Cigna Healthcare offers comprehensive medical and coordinated solutions, including commercial medical plans and international healthcare solutions, making it a foundational growth business for the company . Additionally, Cigna's business activities include Other Operations, which encompass corporate-owned life insurance and run-off businesses, although these contribute less significantly to overall revenue .

    1. Evernorth Health Services - Focuses on pharmacy benefits, specialty pharmacy, specialty distribution, and care delivery and management solutions, partnering with health plans, employers, governmental organizations, and healthcare providers.
      • Pharmacy Benefit Services - Provides pharmacy benefits management services.
      • Specialty and Care Services - Offers specialty pharmacy and care management solutions.
    2. Cigna Healthcare - Provides comprehensive medical and coordinated solutions through its U.S. Healthcare and International Health operating segments.
      • U.S. Healthcare - Offers commercial medical plans, Medicare Advantage, Medicare Supplement, and individual health insurance plans.
      • International Health - Provides healthcare solutions in international markets.
    3. Other Operations - Includes corporate-owned life insurance and run-off businesses, contributing less significantly to overall revenue.

    Key Metrics

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    Executive Team

    NamePositionStart DateShort Bio
    David BrailerExecutive Vice President and Chief Health OfficerSeptember 2022David Brailer is the Executive Vice President and Chief Health Officer of The Cigna Group. He is also the Founder and Chairman of Health Evolution, a role he began in 2011 .
    David M. CordaniChairman of the Board and Chief Executive OfficerJanuary 2022 (Chairman), December 2009 (CEO)David M. Cordani has been serving as the Chairman of the Board since January 2022 and as the Chief Executive Officer since December 2009. He joined The Cigna Group in 1991 and has held various senior leadership roles .
    Noelle K. EderExecutive Vice President, Global Chief Information OfficerSeptember 2020Noelle K. Eder is responsible for the company's technology and operations function beginning September 2023. She previously served as Executive Vice President, Chief Information and Digital Officer at Hilton .
    Brian C. EvankoExecutive Vice President, Chief Financial Officer, and President and CEO, Cigna HealthcareJanuary 2021 (CFO), February 5, 2024 (CEO, Cigna Healthcare)Brian C. Evanko began his role as Executive Vice President and Chief Financial Officer in January 2021. Effective February 5, 2024, he assumed the additional role of President and CEO of Cigna Healthcare .
    Nicole S. JonesExecutive Vice President, Chief Administrative Officer, and General CounselJune 2011 (General Counsel), September 2023 (CAO)Nicole S. Jones began her role as Executive Vice President and General Counsel in June 2011 and was named Chief Administrative Officer in September 2023. Her responsibilities include Human Resources and legal functions .
    Eric P. PalmerExecutive Vice President, Enterprise Strategy and President and CEO, Evernorth Health ServicesJanuary 2022 (CEO, Evernorth), January 2024 (EVP, Enterprise Strategy)Eric P. Palmer began his role as President and CEO of Evernorth Health Services in January 2022 and assumed the additional role of Executive Vice President, Enterprise Strategy in January 2024 .
    Michael W. TriplettSpecial AdvisorJanuary 2024Michael W. Triplett began serving as a Special Advisor at The Cigna Group in January 2024. He was previously the President of U.S. Commercial at Cigna Healthcare from February 2017 to January 2024 .
    Jamie KatesChief Accounting OfficerJuly 1, 2024Jamie Kates serves as the Chief Accounting Officer at Cigna Group, effective July 1, 2024. Kates is a beneficial owner of 1,216 shares of Cigna's common stock .

    Questions to Ask Management

    1. Given the potential for Skyrizi and Rinvoq to limit the adoption of HUMIRA biosimilars, how does Cigna plan to ensure the success of its biosimilar offerings and mitigate the risk of losing market share in this space?

    2. With the Inflation Reduction Act causing increases in Medicare Part D premiums and potential disruptions, how is Cigna adjusting its strategy to manage these changes, and what impact do you anticipate on your Evernorth and Express Scripts businesses?

    3. As GLP-1 drugs become a major driver of pharmacy benefit trends, how is Cigna addressing the affordability challenges for clients and patients, and how do you foresee this affecting the adoption and effectiveness of your EnCircleRx program?

    4. Considering the current scrutiny and regulatory pressures on pharmacy benefit managers regarding pricing transparency and payment models, how is Cigna evolving its PBM business to address these concerns while maintaining profitability?

    5. Given the anticipated rise of Individual Coverage Health Reimbursement Arrangements (ICRAs) and their potential to disrupt the small group market, what is Cigna's strategy to mitigate any financial impact and capitalize on opportunities within the individual exchange business?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateN/A
    End Date/DurationNo expiration
    Total additional amountN/A
    Remaining authorization$5.6 billion
    DetailsThe program is part of Cigna's capital management strategy to return capital to shareholders, optimize the capital structure, and enhance shareholder value. It can be executed through open market purchases, Rule 10b5-1 trading plans, or privately negotiated transactions, and may be suspended or discontinued at any time.

    Debt Maturity Schedule

    YearAmount Due (in millions)Debt TypeInterest Rate% of Total Debt
    2024$1,635 Commercial Paper N/A 5.0% = (1,635 / 32,802) * 100
    2025$1,215 4.125% Notes 4.125% 3.7% = (1,215 / 32,802) * 100
    2025$893 3.250% Notes 3.250% 2.7% = (893 / 32,802) * 100
    2026$2,532 4.500% Notes 4.500% 7.7% = (2,532 / 32,802) * 100
    2027$2,719 3.400% Notes 3.400% 8.3% = (2,719 / 32,802) * 100
    2028$3,789 4.375% Notes 4.375% 11.5% = (3,789 / 32,802) * 100
    2029$994 5.000% Notes 5.000% 3.0% = (994 / 32,802) * 100
    2030$1,405 2.400% Notes 2.400% 4.3% = (1,405 / 32,802) * 100
    2031$2,156 2.375% Notes 2.375% 6.6% = (2,156 / 32,802) * 100
    2033$840 5.400% Notes 5.400% 2.6% = (840 / 32,802) * 100
    2034$1,256 5.250% Notes 5.250% 3.8% = (1,256 / 32,802) * 100
    2036$190 6.150% Notes 6.150% 0.6% = (190 / 32,802) * 100
    2038$2,193 4.800% Notes 4.800% 6.7% = (2,193 / 32,802) * 100
    2040$744 3.200% Notes 3.200% 2.3% = (744 / 32,802) * 100
    2041$920 5.875% Notes 5.875% 2.8% = (920 / 32,802) * 100
    2042$315 5.375% Notes 5.375% 1.0% = (315 / 32,802) * 100
    2046$1,468 4.800% Notes 4.800% 4.5% = (1,468 / 32,802) * 100
    2047$990 3.875% Notes 3.875% 3.0% = (990 / 32,802) * 100
    2048$2,971 4.900% Notes 4.900% 9.1% = (2,971 / 32,802) * 100
    2050$1,237 3.400% Notes 3.400% 3.8% = (1,237 / 32,802) * 100
    2051$1,479 3.400% Notes 3.400% 4.5% = (1,479 / 32,802) * 100
    2054$1,482 5.600% Notes 5.600% 4.5% = (1,482 / 32,802) * 100

    Auditor

    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP1983 PresentCurrent auditor

    Latest news

    Recent developments and announcements about CI.

    Financial Reporting

      Earnings Call

      ·
      6 days ago

      The Cigna Group recently released its earnings call transcript, providing insights into its financial performance and strategic initiatives. Here are the key points from the call:

      1. Financial Performance: Cigna reported a full-year revenue growth of 27% to approximately $247 billion for 2024, with adjusted earnings per share of $27.33, which was a 9% increase year-over-year but fell short of expectations due to higher-than-expected medical costs in their stop-loss products.

      2. Forward Guidance: For 2025, Cigna expects adjusted earnings per share of at least $29.50. The company plans to use proceeds from the sale of its Medicare business to Healthcare Service Corp for share repurchases, which is expected to close in the first quarter of 2025.

      3. Strategic Initiatives: Cigna is focusing on expanding its biosimilar offerings, such as HUMIRA and STELARA, to drive savings for clients and patients. The company is also investing in initiatives to improve patient affordability and transparency, including ensuring patients benefit from negotiated drug prices at the pharmacy counter.

      4. Market Conditions: The company acknowledged the challenging environment, including elevated medical costs and the impact of specialty medications on stop-loss products. Cigna is taking corrective actions to address these issues and expects to recapture margins over the next two years.

      5. Analyst Questions: Analysts inquired about the impact of stop-loss claims on retention and membership, the company's pricing strategy, and the potential for margin recovery. Cigna's management emphasized the integrated nature of their client relationships and the long-term profitability of their stop-loss offerings.

      Overall, Cigna is navigating a dynamic healthcare environment with strategic investments and a focus on long-term growth, despite short-term pressures in specific segments.

      Earnings Report

      ·
      6 days ago

      The Cigna Group has released its earnings results for the fourth quarter and full year 2024. Here are the key highlights:

      • Total Revenues: The company reported total revenues of $247.1 billion for 2024, marking a 27% increase from 2023. This growth was primarily driven by significant gains in Evernorth Health Services, which saw large client wins and strong specialty volume growth.

      • Shareholders' Net Income: For 2024, shareholders' net income was $3.4 billion, or $12.12 per share, compared to $5.2 billion, or $17.39 per share, in 2023. The decrease was partly due to a non-cash after-tax investment loss related to the impairment of VillageMD equity securities.

      • Adjusted Income from Operations: The adjusted income from operations for 2024 was $7.7 billion, or $27.33 per share, reflecting a 4% increase from 2023. This was largely due to strong contributions from Evernorth Health Services.

      • Dividend and Share Repurchase: The Board of Directors declared an 8% increase in the quarterly dividend to $1.51 per share. Additionally, the company increased its share repurchase authorization by $6.0 billion, bringing the total to $10.3 billion.

      • Segment Performance:

        • Evernorth Health Services: Fourth quarter 2024 adjusted revenues increased 33%, and adjusted income from operations, pre-tax, increased 14% compared to the same period in 2023. For the full year, adjusted revenues and income from operations increased 32% and 9%, respectively.
        • Cigna Healthcare: Fourth quarter 2024 adjusted income from operations, pre-tax, decreased 47% compared to the same period in 2023, primarily due to higher stop loss medical costs.

      • 2025 Outlook: The company projects adjusted income from operations for 2025 to be at least $7.9 billion, or $29.50 per share. This outlook includes expected future share repurchases and anticipated dividends.

      These results reflect The Cigna Group's strategic focus on expanding its health services and managing costs effectively, despite challenges in the healthcare segment due to higher medical costs.